Inflation, Housing Affordability Weigh Down Consumer Sentiment

Nearly 80% of respondents believe the economy is on the “wrong track.”

By Vincent Salandro

Frustration toward housing affordability and inflation concerns continued to weigh down consumer sentiment in October.

Nearly 80% of respondents believe the economy is on the “wrong track,” up 7 percentage points from last month, according to the Fannie Mae Home Purchase Sentiment Index (HPSI). Additionally, a survey-record 85% of consumers say it is a bad time to buy a home, with most citing high home prices and mortgage rates as the primary reasons.

Overall, the HPSI increased 8.2 points from its all-time low in October 2022 to 64.9. On a sequential basis, the index is 0.4 points above September levels.